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Relaxations under the FSS ACT 2006 for Food Business Operators

The Food Safety and Standards Authority of India (FSSAI) is a statutory body established under the Food Safety and Standards Act, 2006 (FSS Act 2006) to regulate and monitor the manufacture, processing, distribution, sale and import of food in India. In order to ensure uninterrupted food services and supply during the prevailing COVID-19 conditions across the country, the FSSAI has issued an Order (bearing No. 15 (6)2020/FLRS/RCD/FSSAI) dated 20 th April 2021 (‘Order’). The said Order has been issued under Section 16 (5) of FSS Act 2006 to provide certain relaxations to Food Business Operators 1 (FBOs) in its operations during these prevailing Covid-19 situations.

The main points of relaxations are as follows:

1. As per the prevailing provisions of the FSS Act 2006, except in specific cases such as petty food business (for which specific registration with local authorities are prescribed), all FBOs require a valid license under the FSS Act 2006 to operate its food business. The Order states that all FBOs (except Manufacturers) will be allowed to temporarily operate their food business based on application. This would be applicable for new license registration or modifications of existing licence registration to add a kind of business (other than manufacturer). However, such FBO is required to make an online application and possess a valid receipt of application with a 17-digit Application Reference Number (ARN) through Food Safety Compliance System (FoSCoS). Also, the FBO is required to inform the concerned licensing/registering authorities or the Commissioner of Food Safety on the commencement of the food business along with a copy of the application.

It is pertinent to note that the said permission has certain restrictions attached to it, viz.

(i) the FBO can operate only for essential items and supplies permitted by the authorities.
(ii) the FBO must mandatorily comply with all requirements of the FSS Act 2006 and its regulations including the hygiene requirements.
(iii) the FBO cannot undertake manufacturing of food products without a valid FSSAI license/registration.
(iv) the permission is only for the period of lockdown and the FBO is required to cease the operation within 30 days of end of lockdown, unless a valid FSSAI license/registration is obtained.
(v) the FBO must comply with all stipulations of authorities applicable during lockdown and the permission will not be considered as a deemed approval to operate during lockdown in violation of the lockdown-restrictions.

“Food Business Operator” in relation to food business means a person by whom the business is carried on or owned and is responsible for compliance under the FSS Act 2006 and its regulations. Further, “food business” means any undertaking, whether for profit or not and whether public or private, carrying out any of the activities related to any stage of manufacture, processing, packaging, storage, transportation, distribution of food, import and includes food services, catering services, sale of food or food ingredients.

Further, the said relaxation is available only to those applicants who have the requisite permission from State/ relevant local authorities to operate in the lockdown/ restrictions/ curfew etc.

2. Relaxations to Manufacturers 2 : In case of manufacturers, they can operate their food businesses with a higher capacity, based on application for modification of License. They need to apply for such of FSSAI license by making online application and possess a valid receipt of application having 17-digits ARN generated through FoSCoS.

3. Relaxations on requirements of inspections: The Order provides that no pre-inspections are required for issuance of new FSSAI license/registration, except in case of manufacturing of high-risk food products (such as milk and milk products, slaughterhouses, meat, and meat products etc.) and states that, routine inspections are not required to be done. However, food safety authorities can conduct e-inspections in case of select cases on basis of risk profiling e.g., milk and milk products, slaughterhouses, meat, and meat products etc. or in case of any food emergency/ incidents and complaints as per the existing provision of FSS Act, 2006 or rules and regulations made thereunder.

In addition to the above relaxations, the FSAAI has also extended the timeline for submission of the online annual yearly return for the period of 2020-2021 which was due by 31 st May 2021 to 30 th June 2021 and further, have provided certain waivers on the late payment fees.

We note that these relaxations have been provided only for a limited period till 30 th June 2021, irrespective of the status of lockdown/ curfew/ containment at any location. Further, the Order seeks to ensure that these relaxations do not result in violation of the mandates for safety of food products under the FSS Act 2006. The Order stipulates that the FBOs will continue to have the obligation to comply with health and safety standards under the FSS Act 2006 and its regulations. Also, it mandates the Commissioners of Food Safety to ensure that the FBOs which have availed the permission of operating without licensing/ registration/ modification based on such 17-digit ARN cease its operations within 30 days from the end of the relaxation, unless a valid FSSAI licence/ registration has been obtained by them. However, considering the various difficulties faced by most of the statutory authorities during these testing times of Covid-19 situation, the efficacy of ensuring the safety compliances would become a challenge.

“Manufacturer” means a person engaged in the business of manufacturing any article of food for sale and includes any person who obtains such article from another person and packs and labels it for sale or only labels it for such purposes. “Manufacture” means a process or adoption or any treatment for conversion of ingredients into an article of food, which includes any sub-process, incidental or ancillary to the manufacture of an article of food.

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